Lerøy Seafood Group. Quarterly report First quarter May 12th Helge Singelstad. Ivan Vindheim CEO CFO

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1 Lerøy Seafood Group Quarterly report First quarter 2009 May 12th 2009 Helge Singelstad CEO Ivan Vindheim CFO

2 Agenda 1. 1 Considerations 2. 2 Key financial figures Q Lerøy at a glance 4. 4 Market glance

3 Internal considerations Q All figures in NOK mill Q1-09 Q1-08 Change Change Turnover % % EBITDA % % EBIT bef adj biom % % PTP bef adj biom*) % % *) PTP = Pre-Tax Profit

4 Internal considerations Q Financially solid Net interest bearing debt down Well positioned for future organic and strategic growth Dividend NOK2.80 per share Production Ex-dividend date 27 May 2009 In total, volumes in accordance with 2009E and seasonality Operations satisfactory But still high RFS-value Lerøy Vest due to previous biological issues Start off harvesting 08g at the end of Q2 09 Lower production costs In general, lower production costs going forward Biological performance Feed price

Internal considerations Q1 2009 cont d Sales and distribution Another very good quarter taken into account seasonality

5 Internal considerations Q cont d Sales and distribution Another very good quarter taken into account seasonality Affiliated companies Satisfactory biological performance Lower production costs and higher prices (Norskott/Scottish Sea Farms)

External considerations Q1 2009 Demand and supply Prices significantly up 11.4%, Q1 09 versus Q4 08 13.1%, Q1 09 versus Q1 08 Modest supply growth from Norway 5.

6 External considerations Q Demand and supply Prices significantly up 11.4%, Q1 09 versus Q %, Q1 09 versus Q1 08 Modest supply growth from Norway 5.8% in Q1 09 (volume) Limited production growth in Chile in Q1 09 Harvest Q1 09 approx. in line with Q1 08 Supply down for the remainder of 2009 Low production volumes in the years to come Currently a very strong market Estimated global supply significantly down for the remainder of 2009 Despite economic recession, relatively good demand expected going forward Contract prices lower than spot prices in Q2 09 Political issues / trade barriers For the time being, no material issues

7 Agenda 1. 1 Considerations 2. 2 Key financial figures Q Lerøy at a glance 4. 4 Market glance

8 Income Statement Q All figures in NOK 000 Q Q Salgsinntekter / Operating revenues Vareforbruk / Cost of goods sold Lønnskostnader / Salaries and wages Andre driftskostnader / Other operating costs EBITDA Ordinære avskrivninger / Ordinary depreciation EBIT før verdijustering biomasse / EBIT before fair value adjustment biomass Verdijustering biomasse / Fair value adjustment biomass Driftsresultat / operating profit Inntekt fra tilknyttede selskaper / Income from affiliated companies Netto finansposter / Net financial items Resultat før skattekostnad og før just biomasse/profit before tax bef adj biom Resultat før skattekostnad / Profit before tax Beregnede skatter / Estimated taxation Periodens resultat / Profit for the period

9 Balance Sheet Q All figures in NOK Immaterielle eiendeler / Intangible assets Varige driftsmidler / Tangible fixed assets Finansielle anleggsmidler / Financial fixed assets Sum anleggsmidler / Total fixed assets Varer / Inventories Fordringer / Receivables Betalingsmidler / Cash and equivalents Sum omløpsmidler / Total current assets Sum eiendeler / Total assets

10 Balance Sheet Q All figures in NOK Innskutt egenkapital / Equity contributions Opptjent egenkapital / Earned equity Minoritetsinteresser / Minority interests Sum egenkapital / Total equity Avsetning for forpliktelser / Accrued liabilities Langsiktig gjeld / Long-term liabilities Kortsiktige kreditter / Short-term loans Annen kortsiktig gjeld / Other short-term liabilities Sum gjeld / Total liabilities Sum egenkapital og gjeld / Total equity and liabilities

11 Cash Flow Statement Q All figures in NOK 000 Q Q Kontantstrøm fra drift / Cash flow from operating activities Resultat før skatt / Profit before tax Ordinære avskrivninger / Ordinary depreciation Endring kundefordringer / Change in accounts receivable Endring leverandører / Change in accounts payable Endring verdijustering biomasse / Change in value adjustment biomass Endring varelager / Change in inventories Resultat tilknyttede selskaper / Profit impact affiliated companies Betalt skatt og andre driftsposter / Taxes paid and other operating items Netto kontantstrøm fra drift / Net cash flows from operating activities Kontantstrøm fra investeringsaktiviteter / Cash flow from investing activities Netto investering i varige driftsmidler etc. / Net investment in fixed assets etc Netto investering i immaterielle eiendeler / Net investment in intangible fixed assets Netto utbetaling ved kjøp av aksjer etc. / Net payments for acquisitions of shares etc Netto utbetaling ved kjøp av konsernselskaper / Net acquisitions of group companies Endring langsiktige fordringer etc. / Change in long-term receivables etc Netto kontantstrøm fra investeringsaktiviteter / Net cash flow from investing activities Kontantstrøm fra finansieringsaktiviteter / Cash flow from financing activities Netto endring i kortsiktige kreditter / Net change in bank overdraft Endring langsiktig gjeld / Net change in long-term debt Netto innbetaling av egenkapital / Net equity contributions Utbetaling av utbytte / Dividend payments Netto kontantstrøm fra finansieringsaktiviteter / Net cash flow from financing activities Netto kontantstrøm for perioden / Net cash flows for the period Betalingsmidler ved periodens begynnelse / Cash and equivalents at beginning of period Betalingsmidler ved periodens slutt / Cash and equivalents at end of period

12 Key figures - Lerøy Seafood Group Q Q Q Resultatmargin / Profit margin 1) 6,91 % -10,04 % 2,71 % Driftsmargin før just.biomasse./ Operating margin before adj.biomass. 9,32 % 5,22 % 5,57 % Driftsmargin / Operating margin 2) 7,64 % -8,00 % 4,97 % Resultat per aksje før just.biomasse/ Earnings per share before adj.biomass 1,72 0,65 2,83 Resultat per aksje / Earnings per share 3) 1,50-1,73 2,33 Utvannet resultat per aksje / Diluted earnings per share 1,50-1,73 2,33 ROCE før just.biomasse (annualisert) / ROCE before adj.biomass (annualised) 10,78 % 5,57 % 6,38 % ROCE (annualisert) / ROCE (annualised) 4) 9,15 % -7,35 % 5,51 % Egenkapitalandel / Equity ratio 50,23 % 51,27 % 48,37 % Netto rentebærende gjeld / Net interest bearing debt Kontantstrøm per aksje / Cash-flow per share 5) 2,22 0,98 3,91 Utvannet kontantstrøm per aksje / Diluted cash-flow per share 2,22 0,98 3,91 1) Resultatmargin = Resultat før skatt/salgsinntekter Profit margin = Profit before tax/revenues 2) Driftsmargin = Driftsresultat/salgsinntekter Operating margin = Operating profit/revenues 3) Resultat per aksje = Majoritetens andel resultat/gjennomsnittlig antall aksjer Earnings per share = Majority interests/average number of shares 4) ROCE = [Res. før skatt+nto fin.poster] / Gj.sn.[nto renteb. gjeld+sum egenkapital] ROCE = [Profit before tax+net financial items]/[net interest bearing debt+total equity] 5) Kontantstrøm fra drift Cash-flow from operations

13 Funding Sound debt repayment profile Bank loans and no balloons NOK million Instalments Covenants NIBD/EBITDA < 5 and Equity ratio > 30% Q1 2009, 3.3 and 55.4% respectively Satisfactory committed unused credit lines Lower capex going forward Investments in fixed tangible assets NOK1.0bn *) *) Adjusted for bank deposits and deferred tax associated with licenses

14 Agenda 1. 1 Considerations 2. 2 Key financial figures Q Lerøy at a glance 4. 4 Market glance

15 Lerøy Seafood Group - Global organization Scotland/Shetland Farming Dist. & Sales Spain, Portugal, France Dist. & Sales Norway Farming Dist. & Sales Sweden Dist. & Sales Turkey Dist. & Sales Japan Dist. & Sales North America Dist. & Sales China Dist. & Sales Chile

16 Lerøy Seafood Group ASA Sales Sales & Distribution Hallvard Hallvard Lerøy Lerøy AS AS 100% 100% Lerøy Lerøy Sverige Sverige AB AB 100% 100% Nordvik Nordvik SA SA 90% 90% Portnor Portnor Lda Lda 60% 60% Lerøy Lerøy Sjømatgruppen Sjømatgruppen * * * Division national distribution ** Salmon farming *** Distribution, processing, smokehouse Production Lerøy Lerøy West West 100% 100% Lerøy Lerøy Mid-Norway Mid-Norway 100% 100% Lerøy Lerøy North North 100% 100% Lerøy Lerøy Fossen Fossen AS AS 100% 100% Lerøy Lerøy Smøgen Smøgen Seafood Seafood AB AB 100% 100% Sigerfjord Sigerfjord Aqua Aqua AS AS 95.55% 95.55% Bulandet Bulandet Fiskeindustri Fiskeindustri AS AS 53.17% 53.17% Affiliated Norskott Norskott Havbruk Havbruk AS** AS** 50% 50% Alfarm Alfarm Alarko Alarko Lerøy*** Lerøy*** 50% 50% = Salmon farming, processing = Processing, smokehouse = Arctic char farming = Processing white fish

Lerøy Seafood Group Global distribution network Global distribution from Head Office in Bergen Local distribution and processing in Norway, Sweden, France, Portugal and Turkey Local representative

17 Lerøy Seafood Group Global distribution network Global distribution from Head Office in Bergen Local distribution and processing in Norway, Sweden, France, Portugal and Turkey Local representative offices in some key markets (France, Japan, China and USA) 11.0% share of Norwegian seafood export value 17.3% of Norwegian salmon export 24.5% of Norwegian value added salmon export Total of 1,452 employees Sales and distribution 443 Production and farming 1,009 Affiliates 329 (not consolidated)

Lerøy Seafood Group Fully integrated From roe to the plate Competent employees Decentralized farming units Autonomous units in three regions In addition, the affiliated company

18 Lerøy Seafood Group Fully integrated From roe to the plate Competent employees Decentralized farming units Autonomous units in three regions In addition, the affiliated company Scottish Sea Farms in Scotland Centralized sales and distribution with a global sales network Group structure gives rise to economies of scale and avoidance of scale disadvantages

19 Lerøy Seafood Group Market strategy: Quality Branding Diversity in product range Diversity in customer base Market-oriented solutions Geographical spread Continuity in deliveries Cost efficiency

20 Lerøy Seafood Group - Sales per market Q1 09 USA and Canada 5,7 % Rest of Europe 6,2 % Others 1,5 % Norway 18,4 % EU 56,0 % Asia Pacific 12,3 %

21 Lerøy Seafood Group - Sales per product Q1 09 Pelagic fish 1,8 % White fish 10,7 % Shellfish Other 5,4 % 3,3 % Salmontrout 6,4 % Whole salmon 50,8 % Processed salmon 21,6 %

22 Farming Norway Lerøy Aurora AS Sigerfjord Aqua AS Lerøy Aurora AS Sigerfjord Aqua AS Lerøy Midnor AS Lerøy Hydrotech AS Lerøy Vest AS Lerøy Midnor AS Lerøy Hydrotech AS Lerøy Vest AS

23 Lerøy Seafood Group Salmon/trout farming Company Ownership Licences Mill. smolt E share No individuals GWT GWT GWT Lerøy Midnor AS 100 % 30 9, Lerøy Aurora AS 100 % 17 5, Lerøy Hydrotech AS 100 % 24 7, Lerøy Vest AS*) 100 % 34 14, Total Norway , Norskott Havbruk AS (UK)**) 50 % 6, Total 41, Consolidated, farming Affiliated, farming *) Merger of Lerøy Austevoll AS and the farming activities in Lerøy Fossen AS **) LSG s share

24 Lerøy Seafood Group Salmon/trout farming Company Ownership Volume Volume Share Rest Share share 2009E YTD Q1 % 2009E % Lerøy Midnor AS 100 % % % Lerøy Aurora AS 100 % % % Lerøy Hydrotech AS 100 % % % Lerøy Vest AS*) 100 % % % Total Norway % % Norskott Havbruk AS (UK)**) 50 % % % Total % % Consolidated, farming Affiliated, farming *) Merger of Lerøy Austevoll AS and the farming activities in Lerøy Fossen AS **) LSG s share

25 Key Figures Production Q Figures NOKm Lerøy Midnor Lerøy Hydrotech Lerøy Aurora Lerøy Vest Others / elimination Total Q Total Q Revenues 270,9 68,5 132,3 161,0 86,8 719,5 547,5 EBIT before biom.adj 67,5 5,2 26,8 20,7-1,1 119,1 64,8 EBIT 30,3 20,6 19,9 22,9-0,1 93,6-109,1 Volumes (gwtt) 9,2 2,2 4,6 6,2 22,2 18,2 EBIT/kg 7,3 2,4 5,8 3,3 5,4 3,6

26 Key Figures Sales & Distribution Q Figures NOKm Sales & Distribution Elimination Total Q Total Q Revenues 1 634,8-168, , ,9 EBIT before biom.adj 29,7 0,2 29,9 8,3 EBIT 29,7 0,2 29,9 8,3

27 Norskott Havbruk LSG s share = 50% NOKm Q Q Revenues EBITDA EBIT bef adj biom EBIT Pre tax Volumes (gwtt) 5,7 6,3 22,8 EBIT/kg 5,6 3,6 2,5 Balance sheet Licences, goodwill Tangible fixed assets Inventories Other current assets Total assets Equity Debt Total equity and debt Net interest bearing debt

28 Agenda 1. 1 Considerations 2. 2 Key financial figures Q Lerøy at a glance 4. 4 Market glance

29 50 Fresh Atlantic Salmon Norway (4-5 kg) price development week week (FHL/NSL/NOS) NOK/kg Figures as per Source: FHL/NSL/NOS

30 Oslo Salmon export from Norway as of week Fresh Atlantic salmon, cross-section, FCA Oslo. NOK / kg Oslo 46,00 44,00 42,00 40,00 38,00 36,00 34,00 32,00 30,00 28,00 26,00 24,00 22,00 20,00 18,00 16,00 14,00 Avrg. Q NOK (+13.1%) Avrg. Q NOK Avrg NOK (+3.1%) Avrg NOK Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q ,42 18,92 18,09 20,35 22,38 23,10 21,26 20,23 23,44 24,89 26,86 25,94 28,24 39,72 34,44 25,92 27,47 25,00 24,34 23,10 24,94 25,02 27,72 25,33 28,22 32,49 12,00 W 1-03 W W W W W W 9-04 W W W W W W W W W W W W W W W 2-07 W W W W W W W W W W W 8 09 W Quarterly price Weekly price Figures as per Source: FHL/NSL/NOS

31 Market development for Atlantic Salmon from Norway Jan-March 2008 vs Jan-March 2009 Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change EU ,5 % ,5 % Others ,7 % ,0 % Japan ,3 % ,7 % Russia ,6 % ,1 % USA ,4 % ,4 % In total ,8 % ,7 % (Volume in tons round weight, value in thousand NOK) Others is specified on the following slide Figures as per Source: NSEC

32 Market development for Atlantic Salmon from Norway Jan-March 2008 vs Jan-March 2009 Others: "Others" Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change Ukraine ,7 % ,3 % Hongkong ,4 % ,0 % China ,5 % ,5 % South Korea ,2 % ,7 % Taiwan ,8 % ,8 % Israel ,7 % ,8 % Thailand ,2 % ,9 % Vietnam ,0 % ,7 % Switzerland ,6 % ,5 % Singapore ,8 % ,0 % Turkey ,1 % ,8 % Belarussia ,2 % ,3 % Australia ,3 % ,6 % South Africa ,6 % ,6 % Kazakhstan ,8 % ,9 % Other countries ,2 % ,5 % Total "Others" ,7 % ,0 % (Volume in tons round weight, value in thousand NOK) Figures as per Source: NSEC

33 Market development for Atlantic Salmon from Norway Jan-April 2008 vs Jan-April 2009 Volume 2008 Volume 2009 Change Value 2008 Value 2009 Change EU ,2 % ,9 % Others ,7 % ,2 % Japan ,6 % ,3 % Russia ,2 % ,8 % USA ,5 % ,2 % In total ,6 % ,6 % (Volume in tons round weight, value in thousand NOK) Others is specified on the following slide Figures as per Source: NSEC

34 Atlantic salmon Supply in tons WFE Change Change Change Change Change Change Change E E 2008 E 07-08E 2009 E 08E-09E Norway ,5 % % % % ,9 % ,4 % ,7 % United Kingdom ,8 % % % % ,8 % ,1 % ,6 % Faroe Islands ,9 % % % % ,7 % ,3 % ,3 % Ireland ,5 % % % % ,5 % ,5 % ,4 % Iceland ,7 % % % % ,0 % ,0 % ,0 % Total Europe ,6 % % % % ,3 % ,4 % ,3 % Chile ,7 % % % % ,3 % ,9 % ,9 % Canada ,9 % % % % ,8 % ,2 % ,3 % Australia % % % ,7 % ,0 % ,7 % USA ,4 % % % % ,6 % ,2 % ,8 % Others ,0 % % % % ,0 % ,7 % ,3 % Total America ,5 % ,4 % % % ,2 % ,3 % ,9 % Total World-wide ,2 % ,5 % ,6 % ,7 % ,0 % ,3 % ,4 % Chilean 2009 harvest figures are subject to significant uncertainty Figures as per Source: Kontali / Lerøy

35 Drivers Salmon per Norway total export volume of Atlantic Salmon (177,284 MT WFE) % Norway total export value of Atlantic Salmon (NOK4,800m) % Norway EU (volume Atlantic Salmon) (129,192 MT WFE) % Norway EU (value Atlantic Salmon) (NOK3,465m) % Norway Russia (volume Atlantic Salmon) (15,516 MT WFE) % Sales of fish-feed in Norway as per March 09 (182,900 MT) % MT = Metric Ton = 1 Ton Figures as per Sources: NSEC / Kontali / FHL

36 Drivers Salmon as per Norway total export volume of Atlantic Salmon (242,727 MT WFE) % Norway total export value of Atlantic Salmon (NOK6,700m) % Norway EU (volume Atlantic Salmon) (175,196 MT WFE) % Norway EU (value Atlantic Salmon) (NOK4,796m) % Norway Russia (volume Atlantic Salmon) (21,882 MT WFE) % Norway USA (volume Atlantic Salmon) (9,283 MT WFE) % Sales of fish-feed in Norway as per April 09 (249,100 MT) % MT = Metric Ton = 1 Ton Figures as per Sources: NSEC / Kontali / FHL

37 Going forward! Satisfactory financing Lower capex Operational improvements Good demand for seafood Improved profitability Continued consolidations Create sustainable shareholder value Annual dividend since 1995 Share liquidity Share price

38 Thank you!

i figures 2008 February 26 th 2009 Helge Singelstad Ivan Vindheim

Lerøy Seafood Group Preliminary i financial i figures 2008 February 26 th 2009 Helge Singelstad CEO Ivan Vindheim CFO Agenda 1. 1 Considerations 2. 2 Key financial i figures Q4 2008 3. Lerøy at a glance